2024 Annual

Permanent Rulemaking

Fee Setting and

SB24-076 Implementation

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August 22, 2024

Agenda

1. Welcome & Introductions
2. Fee Setting

Public Comment

• SB24-076 Legislation Implementation - SE Criteria

Public Comment

• Lunch Break
• SB24-076 - Legislation Implementation

Public Comment

• Wrap-Up & Next Steps

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Rulemaking Timeline

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** MED may decide to hold additional stakeholder meetings between September 12th and October 1st, as warranted.

Engagement & Expectations

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• Meeting Materials - Available on the MED Rulemaking Webpage
• Comment Opportunities
• Please sign-up to provide comments during the meeting, using the online sign in sheet
• Oral comments during rulemaking meeting will be limited to 2 minutes each
• Written public comment form is always available
• Business promotion is not appropriate
• Please be respectful

Rulemaking Guiding Principles

Rules should be:

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TRANSPARENT

SYSTEMATIC

OPERABLE

DEFENSIBLE

Rules Presentation

Fees

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Initial Application, Renewal, and License Fees

• Rule 2-205 (pp. 3-12)

Social Equity

• Rules 2-206 (pp. 12-16)

Statutory Requirements

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Colorado Constitution, Art. XVIII, Section 16

Required the establishment of application and license fees for the regulation of marijuana, including annual adjustments for inflation.

Regulations required under CO’s constitution include: (a) security requirements; (b) requirements to prevent underage access; (c) labeling requirements; (d) health and safety standards; (e) restrictions on advertising and display; (f) civil penalties for failure to comply.

44-10-801 & -803, C.R.S. - Marijuana Cash Fund & Fees

Requires fees to reflect the direct and indirect costs of the administration and enforcement of the Colorado Marijuana Code.

Requires the Department to review fees annually and adjust as necessary to reflect the direct and indirect costs of administration (includes expectations of inflation-based adjustments).

Directs the Department to transfer a portion of the application fee to the relevant local jurisdiction.

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Timeline of Fee Modifications

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2010: HB 10-1284 creates the Medical Marijuana Code and allows the State Licensing Authority to establish Medical Marijuana program fees

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2012: Related rulemaking to establish fees for Retail Marijuana Businesses

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2012-2016: Fees unchanged

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2016: Permanent rulemaking reduces license fees by 22% in order to provide temporary relief to licensees

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2016-2021: Fees remain unchanged with temporary reduction in place

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2021: Temporary fee reduction ends

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2021-2023: Fees unchanged

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2023: Emergency and subsequent permanent rulemaking increase fees pursuant to

§ 44-10-801(3)(b), C.R.S.

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2024: Emergency rulemaking adjusts fees to account for new license terms and inflation; permanent fee rulemaking is initiated

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MED Budget Overview

Background, Cost Cutting Measures & Efficiency Efforts

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August 22, 2024

2024 Rulemaking - Fee Setting

Fees

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Fees increased: ~5% to account for inflation and to reflect the new 2 year license term

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* SB 24-076 - Fiscal Note

Additional Approaches Under Consideration

Fees

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Finding of Suitability & Owner License Fees

• ALL Natural Person’s will apply and pay the application fee - $720
• License Fees
• Controlling Beneficial Owner: $360
• Controlling Beneficial Owner-SE: $0.00 - represents an additional reduction not currently reflected in rules

Pilot Program Opportunities

• Payment plans / annual fee payments rather than biennial

Public Comment

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Rules Presentation

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SB24-076 Legislation Implementation

Rules Presentation

SB 24-076 Implementation

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Social Equity Criteria

• Rule 2-235(B.6) (pp. 23-25)

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Effective February 1, 2025

Public Comment

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Lunch Break

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Stakeholder Rulemaking Meeting

will resume at

1:30 pm

Welcome Back

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Stakeholder Rulemaking Meeting will resume shortly

Afternoon Agenda

• Welcome Back & Reminders
• SB24-076 - Legislation Implementation

Public Comment

• Wrap-Up & Next Steps

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Engagement & Expectations

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• Meeting Materials - Available on the MED Rulemaking Webpage
• Comment Opportunities
• Please sign-up to provide comments during the meeting, using the online sign in sheet
• Oral comments during rulemaking meeting will be limited to 2 minutes each
• Written public comment form is always available
• Business promotion is not appropriate
• Please be respectful

SB 24-076 Implementation

Rules Presentation

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Decontaminated Product - Rule 3-1015(E) - (p. 41)

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Rules Presentation

SB 24-076 Implementation

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Genetic Material Rule Revisions:

• Rule 5-205 (p. 46)
• Rule 6-205 (pp. 52-53)
• Rule 6-705 (p. 56)

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Additional Rules and References:

• Rules 1-115 (pp. 1-2), 3-810(A)(2) (p. 36), & 3-905(33) (pp. 37-40)

Rules Presentation

SB 24-076 Implementation

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Modification of Premises

• Rule 2-260 (pp. 30-31)
• Revised to reflect biennial notification
• Rules 2-255 (p. 29)

Rules Presentation

SB 24-076 Implementation

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Tangible Educational Resource

• Rules 5-115(C.5) (pp. 43-44), 5-125(D) (p. 44), & 6-925(B.5) (p. 59)

Pregnancy Warning

• Rules 5-120(D) (p. 44), 6-115(D) (p. 51), & 6-920(B) (p. 59)

Non-Marijuana Sales

• Rules 6-105 (p. 49), 6-110 (p. 50) , & 6-1110 (p. 61)

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Public Comment

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Wrap-Up & Next Steps

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Meeting #1 - August 1

Meeting #2 - August 22

Meeting #3 - September 12

Final Proposed Rules will be published no later than September 24, 2024

October 1, 2024

Anticipated Effective Date of Final Adopted Rules:

December 4, 2024

Resources

Provided throughout today’s Stakeholder Meeting

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• Fee Setting Presentation
• Draft Rules
• MED Rulemaking Webpage
• Written Comment Form

• Industry Bulletin 24-06:Emergency Rules FAQs
• MED Budget Breakdown
• 2021 Rulemaking Information

Additional Resources

Questions about Rulemaking?

Contact Dyann Smart at dyann.smart@state.co.us

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Submit written comments here.

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Additional Information about Rulemaking is available on the �MED 2024 Annual Permanent Rulemaking Webpage

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